Grab These 4 Buy-Rated Shipping Stocks Racing Higher By StockNews
Even though a resurgence of COVID-19 cases hinders the shipping industry’s growth, the demand for shipping has been rising rapidly with industries reopening across the globe. So, it could be wise to scoop up soaring shipping stocks such as ZIM Integrated (ZIM), Danaos (NYSE:), Euroseas (NASDAQ:), and EuroDry (NASDAQ:).Despite a significant supply and demand imbalance, exacerbated by a strained global supply chain amid the COVID-19 pandemic, most shipping operators have been witnessing solid demand lately. Investors’ interest in the shipping stocks is evident from the Breakwave Dry Bulk Shipping ETF’s (BDRY) 12.2% gain over the past month compared to the SPDR S&P 500 ETF’s (SPY) 0.8% loss.
To make matters worse, shipping companies have seen record freight rates after the strong global demand for manufactured goods following the pandemic. After the March Suez Canal Blockage, in which approximately 321 vessels were held up for 14 days, the latest surge in container prices is due. Grand View Research’s report states that global shipping container markets will expand at a CAGR 12% between 2020-2028.
Given this backdrop, it could be wise to bet on fundamentally sound shipping companies ZIM Integrated Shipping Services Ltd. (ZIM), Danaos Corporation (DAC), Euroseas Ltd . EuroDry Ltd., (EDRY), which are currently rallying. Plus, they are rated ‘Buy’ in our proprietary POWR Ratings system and have plenty of upside left.
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